Mark, the vice president of compensation for a large national retailer, is satisfied with the overall design and operation of the compensation system. Nevertheless, Mark wants to reduce the administrative cost of the compensation system without affecting any of the organization's main compensation objectives. Which of the following options is Mark most likely to seriously consider?
A)recommending that top executives take a 20 percent cut in pay
B)transforming all hourly employees from regular employees to part-time employees
C)eliminating raises for employees
D)offering automatic payroll deposit

Question

Quizplus · Accepted Answer

Offering automatic payroll deposit can significantly reduce administrative costs by eliminating the need for paper paychecks and manual processing. This option does not affect any of the organization's main compensation objectives and is a feasible solution for reducing administrative expenses. A, B, and C are not recommended options as they involve significant changes to compensation and may negatively impact employee morale and retention.

Mark, the Vice President of Compensation for a Large National